Banker Glossary

A

AA

Always Afloat

AAA

Association of Average Adjusters

AAD

Administrative Accompanying Document

A/B

Aktiebolaget (Swedish registered company)

A-BCC

Arab-British Chamber of Commerce

ABI

Association of British Insurers

ABP

Associated British Ports

ABS

American Bureau of Shipping

A/C

Account

Acceptance

This term has several related meanings. A time draft (or bill of exchange) that the drawee has accepted and has to pay when it matures. Once the draft is presented for acceptance, the drawee then becomes the “acceptor” for payment. The word “accepted” and the date and place of payment must be written on the face of the draft.

ACEP

Approved Continuous Examination Programme

ACMET

Advisory Council on Middle East Trade

ACP

African Caribbean and Pacific States

ADB

Asian Development Bank

ADP

Automatic Data Processing

ADR

The European Agreement on the ‘International Carriage of Dangerous Goods by Road’

Ad Valorem

According to value. See Duty.

Advance Against Documents

A loan that is secured against the documents covering a shipment

Advising Bank

A bank, operating in the exporter’s country, that handles letters of credit for a foreign bank. This bank will notify the exporter that the credit has been opened in its favour. Although the advising bank must inform the exporter of the conditions of the letter of credit, they are not necessarily responsible for payment.

Advisory Capacity

A term indicating that a shipper’s agent or representative doesn’t have the power to make a decision or adjustment without a shipper’s approval. Compare Without Reserve.

A/E

Abbreviated Entry

AF

Advanced Freight

AFNOR

The French Standards Institute

AG

Aktiengesellschaft (German Company)

Agent

See Foreign Sales Agent

AGVS

Automated Guided Vehicle System

AICS

Associate of the Institute of Chartered Shipbrokers

AID

Agency for International Development

AIM

Automatic Identification Manufacturers

Air Waybill

This is a bill of lading that covers both domestic and international flights which transport goods to a named destination. In effect, the bill represents a receipt for the shipper, indicating that the carrier has accepted the goods listed and has committed to deliver them to a named airport within certain pre-arranged conditions. It is a non-negotiable document. Compare Inland Bill of Lading, Ocean Bill of Lading, and Through Bill of Lading.

ALADI

Spanish abbreviation for Latin American Integration Association

Allonge

An attachment to a Bill of Exchange containing endorsements. This is used when the back of the bill has been completed

Alongside

Goods that are delivered ‘alongside’ are placed on the dock or barge within reach of the transport ship’s tackle. This means they can be loaded aboard the ship more easily.

AML / KYC

Anti-money-laundering law and the know-your-customer checks it requires: identity, ownership and source-of-funds verification before transacting. Required in every bankable transaction.

AN

Advice Note

ANCOM

Andean Common Market

ANF

Arrival Notification Form

AP

Additional Premium

APR

Annual Percentage Rate

APT

Advanced Passenger Train/After Peak Tank

AQL

Acceptable Quality Level

ARA

Antwerp, Rotterdam and Amsterdam range of ports

Arbitrage

Buying foreign exchange, stocks, bonds, and other commodities in one market, then immediately selling them in another market at higher prices

ARPS

Automatic Radar Plotting System

Arr

Arrival

A/S

After Sight

ASA

American Standards Association

ASB

Alternative Side-Band

ASBA

Association of Shipbrokers and Agents

ASEAN

Association of South-East Asian Nations

AST

Average Spring Tides

ATA

Actual Time of Arrival

ATA Carnet

See Carnet.

ATP

European Agreement on the International Carriage of Perishable Goods

ATR

Temporary Admission on Wheels (Admission Temporaire Roulette)

ATSBE (atsbe)

All Time Saved at Both Ends

ATSDO (atsdo)

All Time Saved Discharging Only

At Sight

See Sight Draft

ATSLO (atslo)

All Time Saved Loading Only

ATT

Admiralty Tide Tables

A/V

Ad Valorem (according to value)

Av or Avg

Average

AWB

Air Waybill

AWES

Association of Western Shipbuilders

B

BAF

Bunker Adjustment Factor

Balance of Trade

The difference between a country’s total imports and exports. If exports exceed imports, there’s a positive balance of trade or trade surplus; if not, there’s trade deficit.

Bank Guarantee (BG)

A bank’s written undertaking to pay a stated sum if its client defaults. A financial instrument, not cash; its value depends on the issuing bank’s standing and the exact wording. Demand guarantees are governed by ICC URDG 758.

Barter

Trade without money in which goods are exchanged directly for other goods. Barter is an important means of trade between countries that have currencies which are not easily convertible.

BASEEFA

British Approvals Service for Electrical Equipment in Flammable Atmospheres

Basel Accords

Prudential capital and liquidity rules for banks, issued by the Basel Committee at the BIS. They govern bank soundness and are not a due-diligence standard a counterparty must meet.

BBB

Before Breaking Bulk

BCC

British Chambers of Commerce

BCN

Banker’s Cover Note

B/d

Brought Down

B/D

Bar Draft

Bd

Bond

Bdi

Both dates inclusive

B/E

Bill of Entry (customs)

BEA

British Exporters Association

BEMAS

Buoy Monitor and Alarm System

Beneficiary

The person in whose favour a letter of credit is issued or a draft is drawn

Benelux

A Customs Union between Belgium, the Netherlands and Luxembourg

Bf or B/fwd

Brought Forward

B/G

Bonded Goods

BIFA

British International Freight Association

Bill of Entry

A written description of the nature and value of goods for customs purposes

Bill of Exchange

A written unconditional order from one person (the drawer) to another (the drawee). The bill directs the drawee to pay a specified amount to a named drawer at a fixed or yet to be agreed future date.

Bill of Lading

A contract between a shipper and a transport company setting out the charges and conditions for moving freight. The bill is usually prepared by the shipper on forms issued by the carrier. It represents a document of title, a contract of carriage, and a receipt for goods. Also see Air Waybill, Inland Bill of Lading, Ocean Bill of Lading, and Through Bill of Lading.

BIMC

Baltic and International Maritime Conference

Bkg

Banking

Bkge

Brokerage

Bkrpt

Bankrupt

BLEU

Belgium-Luxembourg Economic Union

Blocked Funds

Cash a bank confirms it has set aside in another party’s favour, usually by SWIFT MT760 or bank letter. Confirms availability; it is not a transfer.

B/L or b.l.

Bill of Lading

BM

Board Measure

BO

Buyer’s Option

Bonded Warehouse

A warehouse that has been authorised by Customs authorities to store goods which haven’t paid any duty.

Bonds/Guarantees

An irrevocable commitment by a bank to make payment provided the terms of the bond or guarantee are met

B/P

Bills Payable

BPB

Bank Post Bill

B/R

Bills Receivable

Broker Joker

Industry slangAn intermediary who represents control over a buyer, seller or instrument without the authority or relationship to support it, typically forwarding documents along a chain. Also “joker broker”. A file presented this way does not advance until written authority from a reachable principal is produced.

B/S

Bill of Sale

BSA / FinCEN

The U.S. Bank Secrecy Act and the Financial Crimes Enforcement Network that administers it: the basis of U.S. AML recordkeeping and suspicious- and large-cash reporting.

BSC

British Shippers Council

BSI

British Standards Institution

BSS

British Standard Specification

BST

British Summer Time

BTC

British Transport Commission

BTG

British Transport Group

Bunker Adjustment Factor

Fuel surcharge on standard or quoted rates, usually based on consignment weight.

Buying Agent

See Purchasing Agent

BV

Bureau Veritas

By collection

Drafts or cheques paid by collection are returned to the bank on which they were drawn to be paid

By negotiation

Drafts or cheques paid by negotiation are paid immediately

C

CA

Compensatory Agreement

CAA

Civil Aviation Authority

CAAC

Customs and Excise

CAB

Civil Aeronautics Board (USA)

CACM

Central American Common Market

CAD

Cash Against Documents

CAF

Currency Adjustment Factor

CAN

Customs Assigned Number

CANDF

Cost and Freight to Foreign Port

CAP

Common Agricultural Policy

CARICOM

Caribbean Community and Common Market

CARIFTA

Caribbean Free Trade Association

Carnet

A customs document that permits the holder to temporarily carry or send goods into certain foreign countries without paying duties or posting bonds. Carnets help businesses display and demonstrate their services.

Cash Against Documents (CAD)

A particular sort of payment for goods. A commission house or another intermediary transfers title documents to the buyer when they receive a cash payment.

Cash In Advance (CIA)

In this type of payment for goods, the buyer pays the full price before shipment is made. This method is usually only used for small purchases or when the goods are built to order.

Cash With Order (CWO)

A payment method for goods in which the buyer pays when ordering. The transaction is binding on both parties.

CASS

Cargo Accounts Settlement System

CBD

Cash Before Delivery

CBI

Confederation of British Industry

Cbm

Cubic Metre

CC

Continuation Clause, Civil Commotion

CCC

Customs Co-operation Council

CC CL

Continuation Clause

CCCN

Customs Co-operation Council Nomenclature

CCE

Collector of Customs and Excise

CCLN

Consignment Note Control Label Numbers

CC/O

Certificate of Consignment/Origin

C/D

Commercial Dock

C&D

Collected and Delivered

CD

Customs Declaration

C DK

Containers Carried on Deck

CDV

Current Domestic Value

C&E

Customs and Excise

CENSA

Council of European and Japanese National Shipowners’ Association

Cert.

Certificate

Certificate of Inspection

A document certifying that merchandise was in good condition just before it was shipped. This is often used with perishable goods.

Certificate of Manufacture

A statement (often notarised) in which a manufacturer certifies that the goods are made and available to the buyer.

Certificate of Origin

A document certifying the country of origin of specified goods. It is used by certain foreign countries for tariff purposes.

CET

Central European Time

C&F

Cost and Freight (now obsolete – superseded by CFR – see also Incoterms 2020)

cf (cu ft)

Cubic Feet

Cf or C/fwd

Carried Forward

CFR

Cost and Freight. A pricing term indicating that the cost of the goods and freight are included in the quoted price; the buyer arranges and pays insurance. See Incoterms 2020.

CFS

Container Freight Station

CFTC

Commodity Futures Trading Commission (USA)

Cge Pd

Carriage Paid

CGSA

Carriage of Goods by Sea Act

CH

Customs House

CHAPS

Clearing House Automated Payment System

Charges Forward

Charges payable by the consignee on arrival

Charter Party

A written contract, usually on a special form, between the owner of a vessel and a “charterer” who rents use of the vessel or a part of its freight space. The contract generally includes the freight rates and the ports involved in the transportation.

Ch Fwd

Charges Forward.

CHIEF

Customs Handling of Import/Export Freight

CHINPAC

China Sea, Indian and Pacific Oceans

CHIPS

Clearing House Inter-bank Payments System

CHO

Containers Carried in Holds

Ch Pd

Charges Paid

Chq.

Cheque

C/I

Consular Invoice, Channel Islands, Certificate of Insurance

Cia

Spanish word for company

CIA

Cash In Advance

CIF

Cost, insurance, freight. A pricing term indicating that the cost of the goods, insurance, and freight are included in the quoted price. See Incoterms 2020.

CIF&C

Cost, Insurance, Freight and Commission

CIFC & 5

Cost, Insurance, Freight, including 5% Commission

CIFC & I

Cost, Insurance, Freight, Commission and Interest

CIF&E

Cost, Insurance, Freight and Exchange

CIF&I

Cost, Insurance, Freight and Insurance

CIFLt

Cost Insurance and Freight, London terms

CIM

International convention governing international rail carriage

CIP

Carriage and Insurance Paid To. See Incoterms 2020.

CIPA

Chartered Institute of Patent Agents

CIRM

International Maritime Radio Association

CIT

Chartered Institute of Transport

CITHA

Confederation of International Trading Houses Associations

C/L

Craft Loss

CLA

Cargo Loading Adaptability

CLASS

Cargo Loading and Scheduling System

Clean Bill of Lading

A receipt for goods issued by a carrier. The bill indicates that the goods were received in “apparent good order and condition”, without damages or other irregularities. Compare Foul Bill of Lading

Clean Draft

A draft to which no documents have been attached

CLECAT

European Liaison Committee of Common Market Forwarders

CMR

Convention on the contract for the International Carriage of Goods by Road

C/N

Consignment Note

C/nee

Consignee

COCOM

Co-ordinating Committee on Export Controls (NATO)

COD

Cash on Delivery

Cof

Cost of Funds

COFACE

Compagnie Francaise pour l’Assurance du Commerce Exterieur (credit insurance company)

C of C

Chamber of Commerce

Collection Papers

All documents (commercial invoices, bills of lading, etc.) given to a buyer to receive payment for a shipment

Collections

A secure, universally recognised method for routing trade documentation through the banking system

COMECON

Council for Mutual Economic Assistance (dissolved 1991)

COMET

Committee of Middle East Trade

COMEX

Commodity Exchange (New York)

Com/I

Commercial Invoice

COMITEXTIL

Co-ordinating Committee for the Textile Industry in the UK

Commercial Invoice

The seller’s invoice to the buyer for goods shipped, stating description, quantity, price and terms of sale. A core document under a letter of credit.

Commission Agent

See Purchasing Agent

Common Carrier

An individual, partnership, or corporation that transports persons or goods for compensation

Community Transit

EU customs regime for moving goods not in free circulation between points in the customs territory of the Union, and to and from common-transit countries, under a single transit declaration.

Confirmed Letter of Credit

A letter of credit to which a second bank, usually in the exporter’s country, adds its own undertaking to pay. The exporter is paid by the confirming bank even if the issuing bank or the buyer defaults, provided the credit’s terms and conditions are met.

Consignee

The party receiving the goods

Consignment

A shipment or delivery of goods sent at one time. Compare also (goods sold) on consignment

Consignment Account

See On Consignment.

Consignor

The sender of the goods

Consular Declaration

A formal statement made to the consul of a foreign country describing goods to be shipped

Consular Invoice

A document required by some foreign countries describing a shipment of goods and showing information such as the consignor, consignee and value of the shipment. Certified by a consular official of the foreign country, it is used by the country’s Customs officials to verify the value, quantity, and nature of the shipment

Convertible Currency

A currency that can be bought and sold for other currencies

CO or C/O

Certificate of Origin

Correspondent Bank

A bank that, in its own country, handles the business of a foreign bank

COT

Customer’s Own Transport

COU

Clip-On Unit

Countertrade

Goods or services that are paid for or part paid for by transferring goods or services from a foreign country. (See Barter)

Countervailing Duty

A duty imposed to counter unfairly subsidised products

C/P

Charter Party

CP

Commonwealth Preference

CPC

Customs Procedure Code

Cpd

Charterer pays dues

CPT

(Carriage Paid To) and CIP (Carriage and Insurance Paid to) Pricing terms indicating that carriage, or carriage and insurance, are paid to the named place of destination. For shipment by other methods than sea, they apply in place of CFR and CIF, respectively. See Incoterms 2020.

CR

Current Rate

Credit Risk Insurance

Insurance designed to cover risks of nonpayment for delivered goods. Compare Marine Insurance

CRF

Clean Report of Findings

CRN

Customs Registered Number

C/S

Currency Surcharge

CSC

Convention for Safe Containers

CT

Counter Trade

CTD

Combined Transport Document

Ctge

Cartage

CTO

Combined Transport Operator

Customs

The authorities that collect duties levied by a country on imports and exports. The term also applies to the procedures involved in this sort of collection

C/V

Certificate of Value

C/VO

Certificate of Value and Origin

CWE

Cleared Without Examination

CWO

Cash With Order

Cy

Currency

D

DAA

Discharge Always Afloat

DAD

Documents Against Discretion of Collecting Bank

Daisy Chain

Industry slangA string of intermediaries, each introducing the next, none with a direct line to the principal. Banks and principals do not work a chain whose end they cannot see.

DAP

Delivered at Place - pricing terms indicating that the goods are at the disposal of the buyer ready for unloading at a named place of destination. See Incoterms 2020.

DAT

Delivered at Terminal. Replaced in Incoterms 2020 by DPU (Delivered at Place Unloaded).

Date Draft

A draft that matures in a specified number of days after the date it is issued, whatever date it is accepted. See also Sight Draft, and Time Draft

DB

Deutsche Bundesbahn (German Railways)

DBE

Dispatch Payable Both Ends

DBEATS

Dispatch Payable Both Ends on All Time Saved

DBEWTS

Dispatch Payable Both Ends on Working Time Saved

Dbk

Drawback

DCCD

Delivered at Container Collection Depot

DC or D.CI

Detention Clause

DC/ or D/CI

Deviation Clause

D/D

Days after Date

Dd

Delivered

DD

Damage Done

DD

Dry Dock

DD/A

Documents against Acceptance

DDA

Duty Deferment Account

DDO

Dispatch Discharging Only

DDP

Delivered Duty Paid. A pricing term under which the seller delivers the goods cleared for import at the named destination, bearing all costs and duties. See Incoterms 2020.

DD & Shpg

Dock Dues and Shipping

Deb

Debenture

Def.

Deferred

Deferred Payment Credit

A type of letter of credit that defers payment until an agreed point after the shipping documents have been presented by the exporter

Demand Draft

See Sight Draft

Dem-des

Demurrage and Dispatch

Demurrage

Liquidated damages which are payable under a charter party. These are paid at a specified daily rate for the days it takes to complete the loading or discharging of cargo after the lay days have expired. These are known as demurrage days.

DEPS

Departmental Entry Processing System

Dest.

Destination

Devaluation

The official lowering of the value of one country’s currency in terms of one or more foreign currencies. For example, if the UK pound is devalued in relation to the US dollar, one pound will “buy” fewer dollars than before

DF

Dead Freight

Dft

Draft

DGN

Dangerous Goods Note

DHD

Dispatch Half Demurrage

DIN

German Standards Institute

DISC

Domestic International Sales Corporation

Dischg

Discharging

Discrepancy (Letter of Credit)

When documents presented do not conform to the letter of credit, it is referred to as a discrepancy

Dispatch

An amount paid by a vessel’s operator to a charterer if loading or unloading is completed in less time than set out in the charter party

Distributor

A foreign agent who sells directly for a supplier and maintains an inventory of the supplier’s products

DKR

Danish Kroner

D/N

Debit Note

D/O

Delivery Order

Dock Receipt

A receipt issued by an ocean carrier to acknowledge receipt of a shipment at the carrier’s dock or warehouse. See also Warehouse Receipt

Documentary Draft

A draft to which documents are attached

Documentary L/C (DLC)

A bank instrument that pays a seller once stipulated trade and shipping documents are presented (UCP 600). The standard instrument of documented trade finance.

Documents Against Acceptance (D/A)

Instructions given by a shipper to a bank, indicating that documents transferring title to goods should be delivered to the buyer (or drawee) only upon the buyer’s acceptance of the attached draft

D/P

Documents Against Payment

D/R

Deposit Receipt

Draft

A written order by one party for a second party to make payment to a third party. They are paper-based payments which are normally ordered in advance and posted overseas

Drawee

The individual or firm on whom a draft is drawn and who owes the stated amount. Compare Drawer

Drawer

The individual or firm that issues or signs a draft, so standing to receive the stated amount from the drawee

D/S

Days after Sight

DSB

Danske Staatsbahn (Danish Railways)

DTI

Department of Trade and Industry

Dumping

Selling goods in another country at a price below the price at which they could be sold in the home market. Or selling goods at a price below the costs incurred in production and shipment

Dunnage

Materials used for the stowage and protection of cargo

Duty

A tax imposed on imports by the Customs authority of a country. Duties are generally based on the value of the goods (ad valorem duties); some other factor such as weight or quantity (specific duties); or a combination of value and other factors (compound duties)

DWC

Dead-weight Capacity (of vessel to carry cargo)

E

EAPE

Exchange as per Endorsement

EAR

Export After Repair

EC

European Community

ECA

Economic Co-operation Administration

ECC

Exchange Control Copy

ECCP

East Coast Coal Port

ECGD

Export Credits Guarantee Department (UK)

ECI

Export Consignment Identifier

ECOFIN

Economic and Financial Affairs Council (EU)

ECPD

Export Cargo Packing Declaration

ECS

Echantillons Commerciaux (Commercial Samples)

ECSI

Export Cargo Shipping Instruction

ECT

Europe Combined Terminals- Rotterdam

EDCS

Electronic Data Capture Service

EDI

Electronic Data Interchange

EDIA

Electronic Data Interchange Association

EEA

European Economic Area

EE&oe

Errors and omissions excepted

EFTA

European Free Trade Area

EFTPOS

Electronic Funds Transfer at Point of Sale

EHA

Equipment Handover Agreement

EHC

Export Health Certificate

EIB

European Investment Bank

EIC

Euro Info Centre

EIMT

Express International Money Transfer

EIR

Equipment Interchange Receipt

EMA

European Monetary Agreement

EMS

Express Money Service

Encl.

Enclosures

Eohp

Except as otherwise herein provided

EOP

End of Passage

EPS

Entry Processing Station

EPU

European Payments Union

ERLOAD

Expected Ready To Load

ESC

European Shippers Council

ESCAP

Economic and Social Commission for Asia & the Pacific

Escrow

Funds or documents held by a neutral third party, often a law firm, and released only when agreed conditions are met. The escrow agent’s licensing and regulation are verified before use.

ESCS

European Coal and Steel Community

ESL

EC Sales Listing

EST

Eastern Standard Time (USA)

ETA

Estimated Time of Arrival

ETD

Estimated Time of Departure

ETS

Estimated Time of Sailing

EU

European Union

EURATOM

European Atomic Energy Community

Euroclear

A central securities depository in Brussels that holds and settles bonds and other securities for its participants, which are banks and financial institutions. A Euroclear position is confirmed, blocked or transferred only through the participant that holds it.

Eurodollars

US dollars deposited in Europe (or outside the USA and Asia). Compare Asian dollars.

Ex

Used in pricing terms in the phrase “ex [location]” (e.g. “ex factory”, “ex dock”) to signify that the quoted price applies only at the location named. The seller places the goods at the buyer’s disposal at that location within a fixed period.

EXBO

Export Buying Office

Exchange Permit

A government permit sometimes required by the importer’s government. It enables the import firm to convert its own country’s currency into foreign currency with which to pay a seller in another country

Exchange Rate

The price of one currency in terms of another. More specifically, the number of units of one currency that may be exchanged for one unit of another currency

Ex-Im Bank Eximbank

US Export-Import Bank

Export Broker

An individual or firm that brings together buyers and sellers for a fee, but does not take part in actual sales transactions

Export Commission House

An organisation that, for a commission, acts as a purchasing agent for a foreign buyer

Export Declaration

See Shipper’s Export Declaration

Export Licence

A government document that permits the licensee to export designated goods to certain destinations. See Open General Export Licence

Export Management Company

A private firm that serves as the export department for several producers of goods or services. They do this by taking title or by soliciting and transacting export business for clients. This is in return for a commission, salary, or a retainer plus commission

Export Trading Company

A firm similar or identical to an export management company

EXW

Ex Works. See Incoterms 2020.

F

FAC

Forwarding Agents Commission

FAO

Food and Agriculture Organisation (UN)

FAS

Free Alongside Ship. A pricing term indicating that the quoted price includes the cost of delivering the goods alongside a designated vessel. See Incoterms 2020.

FATF

Financial Action Task Force: the inter-governmental body that sets global AML/CFT standards. Its grey and black lists shape how banks treat counterparties from given jurisdictions.

FBL

Forwarder’s Bill of Lading

FCA “Free Carrier” to named place

This is an alternative to the term “FOB named port”. It designates the seller’s responsibility for the cost of loading goods at the named shipping point. It covers multimodal transport, container stations, and every method of transport, including air. See Incoterms 2020.

FCIA

Foreign Credit Insurance Association

FCL

Full Container Load

FCR

Forwarder’s Certificate of Receipt

FC & S

Free Capture and Seizure

FCT

Forwarder’s Certificate of Transport

FD

Free Discharge

FEU

40-foot Equivalent Unit

FFA

Free From Alongside

FF & D

Freight and Demurrage

FFI

For Further Instructions

FGA

Free of General Average

FI

Free In. A pricing term indicating that the charterer of a vessel is responsible for the cost of loading and unloading goods.

FIA

Full Interest Admitted

FIATA

International Federation of Freight Forwarders Association

FIB

Free into Barge

FICA

Foreign Credit Insurance Association

FICS

Fellow of the Institution of Chartered Shipbrokers

FIEx

Fellow of the Institute of Export

FIFO

First In First Out

FILTD

Free in Liner Terms Discharge

FIO

Free In and Out

FIOS

Free In and Out plus Stowing

FIOT

Free In and Out plus Trimming

First of Exchange

First copy of a Bill of Exchange to be presented which automatically cancels all other copies

FIT

Federation of International Traders

FIW

Free In Wagon

F/L

Freight Liner

FLIC

Forwarders Local Import Control

Floating Policy

See Open Insurance Policy

FMB

Federal Maritime Board (USA)

FMC

Federal Maritime Commission (USA)

FO

Free Over-side

FOA

Free on Airport

FOB

“Free On Board” at named port of export. A pricing term indicating that the quoted price covers all expenses up to and including delivery of goods on an overseas vessel provided by or for the buyer. See Incoterms 2020.

FOBA

Free on Board Aircraft

FOBS

Free on Board and Stowed

FOBT

Free on Board and Trimmed

FOC

Free Of Charge

FOD

Free of Damage

FODA

Free of Damage Absolutely

FONASBA

The Federation of National Shipbrokers and Agents

FOQ

Free on Quay

FOR

Forwards

Force Majeure

The title of a standard clause in marine contracts exempting the parties for not meeting their commitments because of events beyond their control. The events include conditions such as earthquakes, floods, or war

Foreign Exchange

The currency or credit instruments of a foreign country. Also, transactions involving the purchase or sale of currencies

Foreign Sales Agent

An individual or firm that serves as the foreign representative of a domestic supplier and seeks sales abroad for the supplier

Foul Bill of Lading

A receipt for goods issued by a carrier which indicates that the goods were damaged when received. Compare Clean Bill of Lading

FP

Floating Policy

FPA

Free From Particular Average

FPAA

Free From Particular Average Absolutely

FP-C

Flash Point Celsius

Fpil

Full Premium if Lost

FR

Free Circulation (EU)

FR

Freight Release

FRA

Forward Rate Agreement

Free on Rail (FOR)

A pricing term under which the seller delivers the goods loaded on a railway wagon at the named place. Not an Incoterm.

Free Port

An area such as a port city into which goods can be legally moved without paying duties

Free Trade Zone

A port designated by the government of a country for duty-free entry of any non-prohibited goods. Goods can stored, displayed, used for manufacturing and so on, within the zone and re-exported without duties being paid. Duties are imposed on the goods – or the items they manufacture – only when the goods pass into an area of the country that is covered by the Customs authority

Freight Forwarder

An independent business that handles export shipments for compensation

Fresh-Cut vs. Seasoned

Market terms for bank instruments. “Fresh-cut” paper is newly issued; “seasoned” paper has been issued and held for a period. A seller of seasoned paper evidences ownership before requesting buyer proof of funds. (Distinct from the U.S. Rule 144 holding periods for restricted securities.)

Frof

Fire risk On Freight

Frt

Freight

FS

Italian railways

FTA

Freight Transport Association

FTC

Federal Trade Commission (USA)

FTL

Full Trailer Load

FTZ

Free Trade Zone

Fwd

Forward

G

G/A

General Average

GAC

General Average Certificate

G/A con

General Average Contribution

GBP

Pound Sterling

GCBS

General Council of British Shipping

GCC

Gulf Co-operation Council

GDP

Gross Domestic Product

GmbH

Registered Company (Germany)

GMT

Greenwich Mean Time

GNP

Gross National Product

Gross Weight

The full weight of a shipment, including goods and packaging. Compare Tare Weight

GRT

Gross Registered Tonnage

Gr Wt

Gross Weight

GSM

Good Sound Merchantable

GSP

Generalised System of Preferences

GUV

General Utility Van

GV

Grand Vitesse (Express Train)

H

HAWB

House Air Waybill

HBL

House Bill of Lading

H/C

Held Covered

HCS

Harmonised Commodity System

H/H

Half Height (Container)

HL

Heavy Lift

HMC

Her Majesty’s Customs

HMRC

Her Majesty’s Revenue and Customs

HMSO

Her Majesty’s Stationery Office

HS

Harmonised System

HVR

Hague-Visby Rules

HWM

High Water Mark

I

IATA

International Air Transport Association

IB

In Bond

IBAN

International Bank Account Number. A standard way of uniquely identifying an account, which improved the speed and efficiency of cross border payments

IBAP

Intervention Board for Agricultural Produce

IBRD

International Bank for Reconstruction and Development

ICAB

International Cargo Advisory Bureau

ICAO

International Civil Aviation Organisation

ICB

International Container Bureau

IC&C

Invoice Cost and Charges

ICPO

Irrevocable Corporate Purchase Order: a buyer’s written order to purchase stated goods on stated terms.

IMFPA

Irrevocable Master Fee Protection Agreement: the agreement setting out intermediaries’ fees and their payment through the paymaster. Its value depends on the underlying transaction closing.

IOE

Institute of Export

IPA

Including Particular Average

IPR

Inward Processing Relief

IRD

Inland Rail Depot

IRN

Import Release Note

Irrevocable Letter of Credit

A letter of credit in which the specified payment is guaranteed by the bank if all terms and conditions are met by the seller. Compare 'Revocable Letter of Credit' and 'Confirmed Letter of Credit'

IRU

Union Internationale des Transports Routiers

ISC

Institute Strike Clauses (insurance). See Institute Cargo Clauses

ISF

International Shipping Federation

ISFA

Institute of Shipping and Forwarding Agents

ISO

International Standards Organisation

ISP ISP98

International Standby Practices published by the International Chamber of Commerce.

ITI

Customs Convention on the International Transit of Goods

ITMA

Institute of Trade Mark Agents

ITO

International Trade Organisation

IUPIP

International Union for the Protection of Intellectual Property

IWA

International Waterways Association

IWC

Institute War Clauses (insurance). See Institute Cargo Clauses

J

JIT

Just In Time

JLCD

Joint Liaison Committee on Documents

JPY

Japanese Yen

L

L/A

Lloyds’ Agent

LAB

Lloyds Average Bond

LAFTA

Latin American Free Trade Association

Lay Days

The number of days specified in a charter party to enable the charterer to load or unload cargo. They start to run as soon as the ship reaches the berth or mooring specified in the charter party. If just a port is specified, the ship must have reached a position within the port where the charterer can immediately dispose of its cargo. (This is known as the “Reid test”). The charter party can include a dispatch payment to reward the charterer for saving days when loading or unloading the cargo. Unless the charter party provides otherwise – for example by limiting them to good-weather working days – lay days run consecutively without a break. See also Demurrage

L/C

Letter of Credit

LCL

Less than Full Container Load

LDC

Less Developed Country

Ldg

Loading

Ldg & Dly

Landing and Delivery

Lds

Loads

LEC

Local Export Control

Letter of Credit (L/C)

A Letter of Credit (or Documentary Credit) is an arrangement under which the bank that issues the Credit undertakes to the beneficiary of the Credit (the exporter) that, provided the exporter presents the documents stipulated in the Credit and complies with all the terms and conditions of the Credit, the payment or any other obligation of the bank to the exporter will be fulfilled. By using a Letter of Credit, compared with other methods of payment, both the exporter and the buyer gain the additional independent assurance of the bank that issues the Credit (the Issuing Bank).

LI

Letter of Indemnity

LIC

Local Import Control

Licensing

A business arrangement in which a manufacturer grants manufacturing rights for a product in return for a payment or specified royalties. Alternatively, a firm may have proprietary rights over certain technology and trademarks, which again they release in exchange for some form of payment

LIFFE

London International Financial Futures Exchange

LIFO

Last in First out

Lkg & Bkg

Leakage and Breakage

Lkge

Leakage

L/L

Long Length

LOI

Letter of Intent: a non-binding expression of interest. Opens a conversation; it is not evidence of capacity.

LO/LO

Lift on Lift off

L/T

Long Ton (2,240 lb).

LT-EUR1

Long-Term Movement Certificate (EU)

LTL

Less than Truck Load

LTV

Loan-to-Value: the ratio of the amount advanced to the accepted value of the collateral. Most monetization loans are full recourse.

LVP

Low Value Procedure

LWM

Low Water Mark

M

Mandate

A party holding authority to act and sign for a principal. In banking, the mandate holds signatory power over the principal’s account, conferred by corporate resolution and recorded on the bank’s signature card; there is one per side. An intermediary without that authority is a broker or facilitator, including one who is direct to a principal.

Manifest

See ‘Ship’s Manifest’

Marine Insurance

Insurance that compensates the owners of goods transported overseas for a loss that cannot legally be recovered from the carrier. Also covers air shipments. Compare Credit Risk insurance

Marking (or Marks)

Letters, numbers, and other symbols placed on cargo packages to identify them

MAT

Marine, Aviation and Transport (insurance)

MAWB

Master Air Waybill

MDHB

Mersey Docks and Harbour Board

MEC

Marine Extension Clause

Medit

Mediterranean

MFN

Most Favoured Nation

Mgr

Manager

MIA

Marine Insurers Act

MIEx

Member of the Institute of Export

Min

Minimum

Min. B/L

Minimum Bill of Lading

Min Wt

Minimum Weight

MIP

Marine Insurance Policy

MLO

Main Line Operator

MM

Made Merchantable

MMA

Merchandise Marks Act

MN

Merchant Navy

MNC

Multinational corporation

MO

Money Order

MOLOO

More or Less at Owners Option

Monetization

Borrowing against an instrument or asset to release cash. Typically a full-recourse loan; the use of funds must support repayment on its own.

Mortgage

A security interest over real property granted by a borrower (the mortgagor) to a lender (the mortgagee) to secure a loan.

Mortgagee

A lender of money, with the loan secured by the borrowers / mortgagors property as agreed to in a mortgage document.

Mortgagor

Someone who borrows money from a lending institution, the mortgagee, and provides property as security for the loan, as agreed to in a mortgage document.

MPC

Multi Purpose Vessel

M/R

Mate’s Receipt

Mst or msm

Measurement

MT

Metric Tonne

MT103 / MT760 / MT799

SWIFT message types. MT103 is a customer funds transfer. MT760 transmits a guarantee or standby letter of credit, a binding bank undertaking. MT799 is a free-format bank-to-bank message and is not evidence of funds or of a commitment.

MTN

(1) Medium-Term Note: a debt instrument, often bank or corporate, with maturities of roughly 1–10 years. (2) Multilateral Trade Negotiations.

MTO

Multimodal Transport Operator

MV or mv

Motor Vessel

N

N/A

Not Applicable

NATS

National Air Traffic Services

NCND

Non-Circumvention, Non-Disclosure agreement: intended to prevent parties bypassing an introducer. Enforceable only to the extent the underlying relationships are documented.

NCV

No Commercial Value

NDPS

National Data Processing Service

NE

Not Exceeding

NEC

Not Elsewhere Classified

NEI

Not Elsewhere Indicated

NES

Not Elsewhere Specified

Net Weight

Weight of the goods alone, excluding packaging or container.

NIR

Northern Ireland Railways

NMB

National Maritime Board

NOK

Norwegian Kroner

NPC

National Ports Council

NR

No Risk Until Confirmed

NRAD

No Risk After Discharge

NRT

Nett Registered Tonnage

NS

Nerdlandse Spoorwegen (Dutch Railways)

NSPF

Not Specially Provided For

N/T

Nett Terms

NTBs

Non-Tariff Barriers

NV

Dutch Term for Incorporated

NVOCC

Non Vessel Operating Common Carrier

NYPLR

New York Prime Lending Rate

O

O/A

On Account Of

OAS

Organisation for American States

OAU

Organisation of African Unity (succeeded by the African Union in 2002)

OBOs

Oil/Bulk/Ore Carriers

O/c

Overcharge

O/C

Open Cover

Ocean Bill of Lading

A bill of lading (B/L) indicating that the exporter places a shipment with an international carrier to transport to a specified foreign market. Unlike an inland bill of lading, the ocean B/L also serves as a collection document. If it is a “straight” B/L, the foreign buyer can get the shipment from the carrier by simply showing proof of identity. If a “negotiable” B/L is used, the buyer must first pay for the goods, post a bond, or meet some other condition agreed with the seller. Compare Air Waybill and Through Bill of Lading

OCN

Out-of-Charge Notice

O/d

On Demand

OECD

Organisation for Economic Co-operation & Development

OFAC

Office of Foreign Assets Control, the U.S. Treasury office that administers sanctions. Transactions with sanctioned parties or jurisdictions are prohibited without a licence, and banks screen every counterparty against its lists.

OFT

Office of Fair Trading

OGL

Open General Licence

OJEC

Official Journal of the European Communities

ON

Official Number

On Board Bill of Lading

A bill of lading in which a carrier certifies that goods have been placed on board a certain vessel

On Consignment

Delivery of goods from an exporter (the consignor) to an agent (the consignee) with the agreement that the agent sells the good for the exporter at an agreed price or at the best possible price. The consignor retains ownership of the goods until the consignee has sold them. The consignee sells the goods for commission and remits the net proceeds to the consignor in a final settlement. This is often known as a consignment account

O/o

Order of

OP

Open or Floating Cargo Policy

OPEC

Organisation Of Petroleum Exporting Countries

Open Account

A trade arrangement in which goods are shipped to a foreign buyer without payment being guaranteed. The obvious risk this method poses to the supplier means it is essential there is a strong degree of trust in the trading relationship

Open General Export Licence

A class of export licence covering export commodities for which individually validated export licences are not required. No formal application or additional written authorisation is needed to ship exports under an Open General Export Licence, although the licence may specify that shipments are notified

Open Insurance Policy

A marine insurance policy that applies to all shipments made by an exporter over a period of time rather than to a particular shipment

OPR

Outward Processing Relief

O/R

Owner’s Risk

Order Bill of Lading

A negotiable bill of lading made out to the order of the shipper

ORL

Owner’s Risk of Leakage

OY

Finnish term for Incorporated

P

P/A

Private Account

Packing List

A list showing the number and kinds of items being shipped, as well as other information needed for transportation

Parcel Post Receipt

The postal authorities’ signed proof of delivery to the receiver of a shipment made by parcel post

Paymaster

The party, often an attorney, that receives transaction funds and disburses fees under the fee agreements.

PBA

Port of Bristol Authority

Pd

Paid or Passed

PD

Port Dues

PE

Period Entry

Perils of the Sea

A marine insurance term used to designate heavy weather, stranding, lightning, collision and sea water damage

Phytosanitary Inspection Certificate

A certificate issued by the exporting country’s plant-protection authority confirming that a shipment has been inspected and is free from harmful pests and plant diseases, as required by the importing country.

P&I

Protection and Indemnity

PKD

Partially Knocked Down

Pkge

Package

P/L

Partial Loss

PLA

Port of London Authority

PM

Premium

PMS

Permanent Manual System

P/N

Promissory Note

PO

Post Office

POA

Place Of Acceptance

POD

Paid On Delivery

POF (Proof of Funds)

Evidence that a buyer holds the funds: bank statement, bank letter or blocked-funds confirmation. Requested after the seller has evidenced ownership of the product.

Political Risk

In export financing, the risk of loss through causes such as currency inconvertibility, government action preventing entry of goods, expropriation or confiscation, and war

POL / POD

Port of Loading / Port of Discharge.

POP

Proof Of Product

Ppd

Prepaid

PPOP

Partial Proof Of Product

PPP

Private Placement Program: a private, invitation-only trading arrangement involving banking instruments. Access depends on verifiable banking relationships; programs offered publicly are treated with caution.

Principal

(1) The party that owns the asset or funds, or bears the obligation, in a transaction, as distinct from an intermediary. (2) The capital amount of a loan, on which interest is charged.

Pro Forma Invoice

An invoice provided by a supplier before goods are shipped. It informs the buyer of the kinds and quantities of goods being sent, their value, and important specifications such as weight and size

PSD

pre-export Document

PSI

pre-export Inspection

PT

Preferential Treatment

PTL

Partial Total Loss

Purchasing Agent

An agent who purchases goods in their own country on behalf of foreign importers, such as government agencies and large private companies

PV

Petite Vitesse (slow goods train)

Q

QIB

Qualified Institutional Buyer. Under SEC Rule 144A, an institution that owns and invests on a discretionary basis at least US$100 million in securities of unaffiliated issuers (US$10 million for a registered broker-dealer).

Qn

Quotation

Qty

Quantity

Quota

The quantity of goods of a specific kind that a country permits to be imported without adding restrictions or imposing extra duties

Quotation

An offer to sell goods at a stated price and under specified conditions

R

Recourse vs. Non-Recourse

Under recourse the borrower repays regardless of the collateral’s performance; under non-recourse the lender’s remedy is limited to the collateral.

REDS

Registered Excise Shippers and Dealers

Reefer

Refrigerated Box or Vessel

Reg S / Rule 144

U.S. securities rules. Regulation S governs offers made outside the United States. Rule 144 sets holding periods before restricted securities may be resold publicly.

Remitting Bank

The bank that sends the draft to the overseas bank for collection

RENFE

Spanish Railways

Representative

See 'Foreign Sales Agent'

RES

Retail Export Scheme

Revocable Letter of Credit

A letter of credit that can be cancelled or altered by the drawee (buyer) after it has been issued by the drawee’s bank. Compare 'Irrevocable Letter of Credit'

RHA

Road Haulage Association

RN

Removal Note

R/O

Routing Order

ROD

Rusting, Oxidation, Denting

Ro/Ro

Roll On Roll Off

RP

Return Premium

RRAFT

Revolving Acceptance Facility by Tender

RTK

Revenue Tonne Kilometres

RTP

Restrictive Trade Practices

RWA

Ready, Willing and Able: a bank letter stating that a client is prepared to proceed. Context, not a guarantee of performance.

S

S/A

Safe Arrival

SAD

Single Administrative Document (also known as C88)

SANR

Subject To Approval No Risk

SB

Short Bill, payable on demand or sight

SBLC

Standby Letter of Credit: a bank’s backup payment undertaking, payable on a compliant demand if the client fails to perform (ISP98 or UCP 600). Its value depends on the issuing bank’s standing and the wording.

SCP

Simplified Clearance Procedure

SCR

Specific Commodity Rate

SD

Sailed

SD

Sight Draft

SDBL

Sight Draft, Bill Of Lading attached

SDR

Special Drawing Rights

SEA

Single European Act

Securities Act of 1933

The U.S. law requiring securities offerings to be registered or exempt, and prohibiting fraud in their offer and sale.

SED

Shipper’s Export Declaration

See-Bee

Sea Barge Carrier

SEM

Single European Market

SEPA

Single European Payment Area. SEPA is a banking industry initiative to standardise the way of making payments across the EU

Shipper's Export Declaration

A form that gives details of individual shipments and is used to control exports. It also acts as a source document for official export statistics. SEDs are prepared by the exporter and the exporter’s agent and delivered to the exporting carrier. The carrier then presents the correct number of copies to customs at the port of export

Ship's Manifest

A written record, signed by the captain of a ship, that lists the individual shipments that make up the ship’s cargo

Shipt.

Shipment

Shpg.

Shipping

SIECA

General Treaty of Economic Integration, Central American States

Sight Draft

A draft that is payable when it is presented to the drawee. Compare ‘Date Draft’ and ‘Time Draft’.

SIS

Shipping Information Service

SIT

Spontaneous Ignition Temperature

SITC

Standard International Trade Classification

SITPRO

Simpler International Trade Procedures Board

SLI

Shipper’s Letter of Instruction

SM

Shipping Master

SNCB

Belgian Railway

SNCF

French Railway

S/o

Shipowner

SO

Seller’s Option

SOB

Shipped On Board

SOEC

Statistical Office European Community

SOL

Shipowners’ Liability

Solicitation

An offer made to persons who have not expressed interest, particularly by general advertising. For securities, restricted unless the offering is registered or exempt. Presenting an owned asset to an identified, interested buyer is generally not solicitation.

SPA

Subject to Particular Average

Spot Exchange

The purchase or sale of foreign exchange for immediate delivery

Spot FX

A contract for exchanging one currency for another at a fixed rate of exchange in two working days’ time

SPV

Special Purpose Vehicle: a separate legal entity created to isolate a transaction or asset, common in funding and collateral structures.

SRCC

Strikes, Riots and Civil Commotion

SS

Steamship

SSD

Supplementary Statistical Declaration

SSN

Standard Shipping Note

Standard Industrial Classification

A numerical code system used by governments, notably the United Kingdom and the United States, to classify industries and economic activity.

Standard International Trade Classification (SITC)

A standard numerical code system developed by the United Nations to classify commodities used in international trade

Standard Shipping Note

A form used by the exporter to provide shipping instructions to the receiving authority

STC

Said To Contain

Steamship Conference

A group of steamship operators that work to mutually agreed freight rates

Straight Bill of Lading

A non-negotiable bill of lading in which goods are consigned directly to a named consignee.

Swaps

A foreign exchange instrument that enables you and your trading partners to lend to each other on different terms

SWIFT

Society for World-wide Interbank Financial Telecommunications. An electronic messaging system between banks that carries payment instructions

SWL

Safe Working Load

T

Tare Weight

The weight of a container and packing materials without the weight of the goods it contains. Compare 'Gross Weight'

TDC

Total Distribution Costs

TDW

Tons Deadweight

Tenor (of a Draft)

Confirmation that a payment is due at sight, or a given number of days after sight, or a given number of days after date

TEU

20-foot Equivalent Unit

Through Bill of Lading

A single bill of lading covering both the domestic and international carriage of an export shipment. An air waybill, for example, is essentially a through bill of lading used for air shipments. Ocean shipments, on the other hand, usually require two separate documents: an inland bill of lading for domestic carriage and an ocean bill of lading for international carriage. A through bill of lading isn’t enough cover for ocean shipments

Time Draft

A draft that matures either a certain number of days after it’s been accepted or a certain number of days after the date of the draft. Compare ‘Date Draft’ and ‘Sight Draft

TIR

Transport Internationale Routier

T/L

Total Loss

TLA

Tanker Loading Authority

TLO

Total Loss Only

TMO

Telegraphic Money Order

TMR

Trade Marks Registry

TP&ND

Theft, Pilferage and Non-delivery

Tramp Steamer

A ship not operating on regular routes or schedules

Transaction Statement

A document that lays out the terms and conditions that the importer and exporter have agreed

Trust Receipt

Release of goods by a bank to a buyer where the bank retains title to the goods. Whether the buyer has obtained the goods for manufacturing or sales purposes, they must keep them – or the proceeds from their sale – distinct from the rest of their assets. This way they are ready to be reclaimed by the bank

TSPP

Tanker Safety and Pollution Prevention

TSR

Transit Shed Register

TT

Telegraphic Transfer

TTC

Tariff Trade Code

TUCC

Transport Users Consultative Committee

TURN

Trader Unique Reference Number

TVA

Tax on Value Added

U

U/A

Underwriting Account

UA

Unit of Account

U/C

Undercharge

UCE

Unforeseen Circumstances Excepted

UCP

Uniform Customs & Practice

UCP600

The current version of the Uniform Customs and Practice for Documentary Credits, published by the International Chamber of Commerce. In effect since 1 July 2007.

U/D

Under Deck

UIC

International Union of Railways

UKL

Pound Sterling (alternative to GBP)

ULD

Unit Load Device

UN

United Nations

UNCITRAL

The United Nations Commission on International Trade Law

UNCLOS

United Nations Conference on the Law of the Sea

UNCTAD

The United Nations Conference on Trade & Development

UNDG

United Nations Dangerous Goods number

UNECE

United Nations Economic Commission for Europe

UNSM

United Nations Standard Message

UPU

Universal Postal Union

URC

Uniform Rules for Collections

URCG

Uniform Rules Contract Guarantees

URDG758

Uniform Rules for Demand Guarantees published by the International Chamber of Commerce publication number 758. Came into effect in July 2010

USD

United States Dollar

U/w

Underwriter

V

Voluming Out

A term applying to shipped goods with a high volume to weight ratio. Such goods are charged higher shipping rates than smaller consignments of the same weight

W

WA

With Average

Warehouse Receipt

A receipt issued by a warehouse, listing goods received for storage

WB

Waybill

Weight or Measurement W/M

Freight rates quoted ‘W/M’ mean that volume and weight rates are calculated and whichever is the greater will apply. The exporter needs to calculate both rates to be certain which charges apply. See Voluming Out

WG

Weight Guaranteed

Wgt

Weight

Wharfage

A charge made by a pier or dock owner for handling incoming or outgoing cargo

WIPO

World Intellectual Property Organisation

Without Reserve

A term indicating that a shipper’s agent or representative has the power to make a decision or adjustment without a shipper’s approval. Compare Advisory Capacity

W/M

Weight and Measurement

W&M

War and Marine

Wolfsberg Principles

Financial-crime compliance guidance published by the Wolfsberg Group of twelve global banks. It does not bind every bank, but it is a fair benchmark of current KYC and AML practice; a counterparty’s own bank typically applies comparable standards.

WP

Without Prejudice

WPA

With Particular Average

WR

War Risk

WR

Warehouse Receipt

W/T

Warranted

Wt

Weight

WTE

Wartime Extension Clause

WTO

World Trade Organisation

WW

Warehouse Warrant

Z

ZAR

South African Rand

ZIP

Zone Improvement Plan

Every engagement is governed by the firm’s Method and Disclaimer; intermediaries should also review Broker 101 and the firm’s Due Diligence standards.